Debt to equity ratio is 3:1 total assets is 40000 roe is 27% calculate net profit
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given
debt equity 3:1
total assets = 40000
return on equity =27% or 0.27
asset = liabilities
let as assume there is no current liability .. and assume as only equity and debt there in liability side
thus total liablities =40000
debt / equity =3/1
therefore debt = 30000 and equity is 10000
now , return on equity = net profit / equity*100
0.27 = net profit / 10000
thus net profit = 2700.
debt equity 3:1
total assets = 40000
return on equity =27% or 0.27
asset = liabilities
let as assume there is no current liability .. and assume as only equity and debt there in liability side
thus total liablities =40000
debt / equity =3/1
therefore debt = 30000 and equity is 10000
now , return on equity = net profit / equity*100
0.27 = net profit / 10000
thus net profit = 2700.
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